OVERVIEW
The Porgera Joint Venture is committed to adding value to the community and providing lasting benefits to the people of Porgera through its mining activities at the Porgera gold mine. At Porgera, sustainability consists of five core principles - corporate commitment, public responsibility, social progress, environmental stewardship and economic benefits.
In 1999, PJV produced its first public 'Sustainability Report' to generate awareness of the social and environmental initiatives implemented during 1998. Following feedback from stakeholders, PJV produced an annual public sustainability report until 2005. Information relating to PJV is now incorporated in the annual Barrick Responsibility Report.
PJV implements a wide range of initiatives aimed at enhancing the social and environmental conditions in the Porgera region.
In March 2009 Barrick produced a comprehensive report on "The Mine, its People and the Future."
PEAK – PORGERA ENVIRONMENTAL ADVISORY KOMMITTEE
In 1996, an independent review of PJV's environmental management was undertaken by the Australian Commonwealth Scientific and Industrial Research Organisation (CSIRO).
PJV established the Porgera Environmental Advisory Kommittee (PEAK) to assist them with the implementation of the recommendations as provided in the review. When the recommendations were implemented, PEAK changed its focus from only environmental monitoring to include longer term social, economic issues and closure. These arose as a result of mine closure planning and the need for sustainable outcomes for communities surrounding the mine.
The formation of PEAK has been central to the mine’s commitment of engaging in dialogue with local people, NGOs and government. Barrick has continued to engage PEAK following the takeover of Placer Dome in January 2006.
CORPORATE COMMITMENT & PUBLIC RESPONSIBILITY
The Porgera Joint Venture is managed by Barrick, which endorses the World Bank definition of Corporate Social Responsibility: “CSR is the commitment of business to contribute to sustainable economic development – working with employees, their families, the local community and society at large to improve the quality of life in ways that are both good for business and good for development.”
PJV communicates, engages and works directly in the community through its community relations and liaison officers. PJV's public responsibility includes participation in the local community through representation on boards of management of schools, the Children's Education Trust, Porgera hospital, the Porgera Development Authority, Paiam Management Company and, during its formative years, Ipili Porgera Investments.
In 2001, PJV was appointed a trustee for a landowner investment trust which also provides an advisory service to landowners wanting to invest in real estate. Through this support, 229 Anawe South Lease for Mining Purposes residents have invested almost K10 million (>USD3 million) in real estate, K1.2 million (USD400,000) in semi-permanent housing and K2.2 million (USD670,000) in Trusts. A further K2.8 million or USD850,000 remains as families make decisions on which option to choose.
PJV also works in partnership with government agencies in the areas of:
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Health – PJV has established a mine site clinic and provides assistance to the Paiam hospital. PJV is also in a tripartite partnership with the National Dept of Health and the Asian Development Bank to control the spread of HIV/AIDS and sponsors Community Health Workers from remote areas to improve health care for the less advantaged.
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Education – PJV provides financial assistance to children who are undertaking secondary schooling. The joint venture also provides financial support for the continued education of elementary school teachers in an effort to enhance their teaching skills. Furthermore, since 2003 PJV has supported adult literacy training, especially for women living in rural communities near the mine.
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Justice – PJV has established an Illegal Mining and Social Responsibility unit which ensure Police are trained in Human Rights issues. This unit along with PJV’s asset protection group works closely with the local, provincial and national constabulary and courts to ensure the rule of law and to minimise risks due to illegal mining.
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Primary industry – PJV has supported the redevelopment of the seed potato industry; as well as forged links with agricultural specialists to train farmers in animal husbandry and higher yield staple crops.
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Infrastructure – PJV has and continues to build and repair roads and classrooms in footprint communities.
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Industry and services - PJV manages the contractor registration process and assists small businesses with taxation advice and training. There is also a review of the contracting process to ensure fair and transparent distribution of economic benefits to local entrepreneurs.
Practical applications of sustainable development programs have shown that closer collaboration with the "Government Administration" is essential to securing a more focused, long term allocation of resources.
SOCIAL PROGRESS
PJV works closely with local people and government to develop, fund and implement social progress initiatives.
Since 2003, PJV has supported adult literacy training, especially for women living in rural communities near the mine. This has been a major initiative in Enga, where only 20% of females complete school to grade 6. About 1,500 pupils learn basic literacy and numeracy in 50 small part time schools, at rural aid posts and sub-health centres.
In 2007, PJV signed an agreement with the Asian Development Bank and the PNG National Department of Health for “HIV Prevention and Control in Rural Development Enclaves.” The project is a unique multilateral agency-public-private sector partnership and encompasses the upgrading of health facilities and equipment, training in dispensing anti-retroviral therapies as well as HIV testing, counselling and awareness techniques, and information systems development.
TAX CREDIT SCHEME
The Tax Credit Scheme (TCS) is a PJV initiative and was developed in conjunction with the PNG National Government. The scheme allows PJV and other resource companies to fund infrastructure projects of a capital nature from a proportion of their tax bill to the state. A special TCS supported work on the Highlands Highway in which PJV managed funds provided by tax credits from PJV, Ok Tedi Mining Limited and Oil Search.
As at December 2006, more than K110 million in TCS projects had been committed or spent. Typically, the Porgera Development Agency implements TCS projects in the Porgera area, and PJV implements projects in other footprint communities. The projects are divided into four main categories:
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Infrastructure (roads and sealing, airstrip expansion & bridge construction);
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Education (construction of classrooms, dormitories, electricity, water supply and fencing);
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Health (hospital wards, health centre and hospital housing); and
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Miscellaneous (libraries, sports ovals, fencing, fishing cooperatives, police barracks and water supplies).
BUSINESS DEVELOPMENT AND ECONOMIC BENEFITS
To encourage non-mine related business development, a key focus of PJV’s business development department is to actively encourage business diversity and investment in non-mine related projects to help facilitate progress of and achieve long term financial stability for the region.
In 2006, more than 1,500 operations contracts were let to local suppliers. Of these, approximately one third went to Porgeran contractors, one half to other Engans, 14% to other PNG national operators and 0.1% to international suppliers. These contracts put K1.5 million per quarter into local Porgeran hands and have helped to teach essential business management skills. Many contractors also engage local Porgerans as sub-contractors to do work around the mine site or provide support equipment for civil works.
In the same year, PJV purchased over K400 million (approximately USD120 million) in goods. About one third was procured in PNG and the remainder (mostly heavy mining equipment and spares) overseas.
Since the development of the Porgera Gold Mine, Ipili Porgera Investments (IPI) has grown to become the largest local business in the Porgera Valley. It operates a number of subsidiaries including a lodge, supermarket, service station, fuel and dry goods transport, catering to PJV messes and retail hardware.
The mine provides employment for hundreds of local Porgerans and other PNG citizens. At the end of 2007, the number of people directly employed by the PJV stood at 2,445 permanent employees. Of these, 1,549 are classified as Porgerans, 35 as Engans, 690 as other PNG citizens and 171 non-citizens.
A number of local Porgerans have been trained as mine, mill and equipment operators, community relations officers, administration officers, environment and exploration geology field assistants. Many of these people have excelled in their jobs and have been promoted to positions of increased responsibility, such as supervisors and leading hands, while one of the first Porgeran university graduates has reached a senior position.
The Porgera mine is an important contributor to the PNG national economy and living standards of citizens throughout the state. Royalties, taxes and duties paid to the government exceed K107 million per year. Salaries and wages paid to employees exceed K114 million per year. On average, since commencing operations, the Porgera mine has contributed in excess of 12% of PNG's total exports.
ENVIRONMENTAL STEWARDSHIP
PJV’s vision for sustainable community development includes the environment. PJV takes a precautionary approach throughout the life of a mine by first assessing potential impacts, then evaluating how to avoid, mitigate or control these impacts. Controls typically include putting into place multi-layers of environmental protection and robust environmental management systems that include advanced planning against possible future events.
PJV adheres to an environmental plan that was approved by the National Government in 1989 and which was updated for the IVB Expansion in 1996. This plan aims to minimise the effects from mining operations and is regularly reviewed.
RIVERINE TAILINGS
At the Porgera mine current tailings management methodology involves riverine tailings discharge. The mine was acquired by Barrick through the Placer Dome acquisition in 2006 and the practice of discharging tailings to a river has been in place for many years.
The mine is situated in an area of steep and unstable terrain, high rainfall and high seismic activity, making construction of a tailings storage facility an extremely difficult task. The mine conducts extensive biological testing to determine the impact of the discharges on the aquatic environment. All discharges are within the water quality limits established by permit.
While this methodology is endorsed by the PNG regulatory authorities, and the monitoring results are sound, PJV and Barrick recognises that many stakeholders have raised concerns about this practice. Accordingly, Barrick has engaged a team of experts to study and assess options to improve, reduce or eliminate the discharge of riverine tailings. Environmental, social, technical, and regulatory considerations will drive selection of the preferred tailings management methodology.
